HomeMarket NewsMicro Cap StocksChargePoint’s Q3 Earnings Fall Short: What Went Wrong and What Lies Ahead

ChargePoint’s Q3 Earnings Fall Short: What Went Wrong and What Lies Ahead

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ChargePoint Holdings Inc CHPT just released their Q3 financial results following a quarter that can only be described as a dumpster fire. Here’s a blow-by-blow of the report.

Q3 Earnings: ChargePoint reported a 12% decrease in third-quarter revenue, down to $110.3 million, missing the consensus estimate by a staggering $12.108 million, according to Benzinga Pro. The company’s jaw-dropping quarterly loss came in at 43 cents per share, a seismic shift from the 25 cents per share loss in the same quarter of the prior year.

Revenue breakdown for the third quarter was as doom and gloom as it gets – networked charging systems revenue was down 24% to $73.9 million, while subscription revenue showed a faint glimmer of hope at $30.6 million, up 41%. Gross margin in the third quarter was a catastrophic negative 22%, down from 18% year-over-year. 

As if that wasn’t bad enough, the company wrapped up the quarter with the financial equivalent of pocket lint, at $397.4 million in cash, equivalents, and restricted cash. 

But wait, there’s more! According to Rick Wilmer, president and CEO of ChargePoint, “ChargePoint’s third quarter execution came up far short of its goals in the face of continued challenging macroeconomic conditions and execution challenges.” No kidding, Sherlock!

In a desperate attempt to lighten the mood, Wilmer added, “Though the quarter overall did not meet expectations, we did demonstrate how we continue to empower the entire EV ecosystem, across hardware and software, and we fortified our balance sheet, which leaves us well capitalized to execute on our strategy.” Here’s hoping this isn’t just wishful thinking!

Against all odds, ChargePoint is adamant about reaching positive adjusted EBITDA in the fourth quarter of fiscal 2025. 

But the best part of this horror fest? Management will hold a conference call to discuss these results at 4:30 p.m. ET. Time to pop the popcorn and watch the show!

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CHPT Price Action: ChargePoint shares are taking a beating, down 25% over the last month. The company’s stock was up a minuscule 0.98% after hours at $2.06 at the time of writing, according to Benzinga Pro. If there’s one thing this carnival of errors has shown, it’s that there’s never a dull moment in the world of finance!

Photo: Tony Webster from Flickr.

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